Praneeta Prakash 
In its 2023 Financial Stability Review, the Reserve Bank of Fiji highlights the strength of the Fijian financial system in the face of global challenges.
These challenges include the March 2023 banking stress, a slowdown in global growth, and rising geopolitical tensions.
The review assesses how global and local market developments affect the financial well-being of Fijian households, businesses, and financial institutions.
The bank monitors seven key areas to evaluate risks to Fiji’s financial system: macroeconomic, credit, market, and liquidity risks, as well as risks related to systemically important financial institutions, risk appetite, capital, and profitability.
According to RBF Governor Ariff Ali, while credit risk remains a concern for the banking industry, the Fijian financial system is robust and well-capitalized.
However, some risks are slightly elevated due to fiscal measures introduced in the 2023-24 National Budget.
These measures, Ali says may impact economic sentiment, household income, and debt repayment in the short to medium term.
Ali emphasizes that maintaining financial stability is one of the key mandates of the Reserve Bank of Fiji.
The regular publication of Financial Stability Reviews underscores the bank’s role as the regulator of Fiji’s financial system.
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